HSBC set a new record low rate today but a top mortgage adviser doesn’t expect more rate drops to follow.

Reserve Bank governor Graeme Wheeler today announced that he will not be seeking a second term as governor and an acting governor has been appointed.

“It has been a great privilege to serve in this role, and in the remaining eight months I will remain fully focused on the economic challenges and opportunities facing the New Zealand economy," Wheeler said, whose current term ends on 26 September this year. "It was my intention, when I was appointed, to serve one term, and then to take on governance roles.”

Under section 40 of the Reserve Bank of New Zealand Act, the Governor is appointed for a five-year term by the Minister of Finance, on the recommendation of the Reserve Bank Board.

The Minister of Finance, Steven Joyce, has, on the Board’s recommendation, announced the appointment of Grant Spencer under section 48 of the Reserve Bank Act to act as governor for a period of six months on the conclusion of Wheeler’s term. Spencer had indicated his intention to retire this year but has agreed to defer in order to fill the acting role.

The Chair of the Reserve Bank Board, Professor Neil Quigley, said the Government has advised the Board that, because of the proximity of the General Election this year, the Board’s recruitment process to identify a successor to Wheeler needs to commence later in the year, and Spencer would cover the post-election caretaker period.

Spencer is deputy governor and head of financial stability, a position he has held since 2007. He serves as chair of the OECD's Committee on Financial Markets, and has held senior management positions at the Bank in economics and financial markets.

In 1995-2004, Spencer was with the Australia and New Zealand Banking Group, holding senior management roles in treasury and strategy in New Zealand and Australia. He has also served terms with the International Monetary Fund as a Special Advisor, European Department, and as New Zealand’s Alternate Executive Director.

Joyce thanked governor Wheeler for his service to the Bank.

"The Governor has performed his role calmly and expertly during a highly unusual period for the world economy. I thank him for his service up until now and for the remainder of his term as Governor," Joyce said.